If the stock of physical capital remains constant while employment rises, output
a) initially declines, then eventually rises
b) increases at an increasing rate
c) remains constant in real terms
d) increases at a decreasing rate
e) fluctuates with the price level
d) increases at a decreasing rate
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Figure 4.4 illustrates the supply of tacos. A decrease in the supply of tacos is represented by a movement from
A) point a to point b. B) point c to point b. C) S0 to S1. D) S2 to S1.
Which of the following is the clearest evidence of employment discrimination against minority employees?
a. The mean number of years of schooling of minority workers is lower than that of whites. b. The average hours worked by minority employees exceeds the hours worked by whites. c. The average wages of minority workers are lower than the average wages of whites. d. The average wages of minority employees are lower than the average wages of whites with similar productivity characteristics.
A. firms are worried that frequent price changes would annoy consumers. B. most firms have agreements with each other to fix prices at profit-maximizing levels. C. government controls most prices. D. foreign competition discourages domestic firms
from price changes. A. Government regulations limit the number of times a firm can change prices in a year. B. In most industries the profit-maximizing price does not change even when demand changes. C. Production costs do not tend to change when a firm varies its level of output. D. Firms may be reluctant to change prices for fear of setting off a price war or losing customers to rivals.
A perfectly inelastic demand curve is
A. a vertical line. B. a horizontal line. C. a line that slopes downward to the right. D. a line that slopes upward to the right.